San Jose Bankruptcy Lawyer Blog

A San Jose bankruptcy lawyer discusses the role of Chapter 7 Trustee...

As soon as a Chapter 7 bankruptcy petition is filed, the court assigns a trustee. A chapter 7 trustee is assigned to each and every chapter 7 bankruptcy. The primary role of the chapter 7 trustee is to liquidate all nonexempt assets that the filer possesses. The chapter 7 trustee does this by selling the debtor’s property so long as it is free and clear of liens and remains non-exempt. The chapter 7 trustee may also sell property if it is worth more than any security interest or lien attached to the property and any exemption that the debtor holds in the property.

The chapter 7 trustee also possesses what are known as “avoiding powers.” These powers include the ability to set aside any transfer of property which he or she feels was preferential within 90 days prior to the filing of the chapter 7 bankruptcy petition. The chapter 7 trustee may also pursue nonbankruptcy claims such as fraudulent conveyance and bulk transfer remedies available under state law. If the debtor is a business, the chapter 7 trustee may operate the business for a short period of time if the court deems that the trustee’s operation of the business would benefit the creditors.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose Bankruptcy attorney discusses Bankruptcy Credit Counseling

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 completely transformed bankruptcy. One of the major changes made by the BAPCA was to implement a mandatory pre-filing credit counseling course. The BAPCA also created a mandatory post-filing, pre-discharge debtor education course.

The pre-filing course is taken with an approved credit counseling organization and includes an overall evaluation of a debtor’s current monthly income and expenditures. The counseling course attempts to help the individual filing for bankruptcy create a monthly budget and cut out excess spending. The course can be taken either online or over the telephone and lasts approximately one hour. The credit counseling certificate is valid for 180 days from the date the course is taken. The credit counseling organization will then issue a certificate of completion which is filed with the court.

The post-filing, pre-discharge course is also provided online and over the telephone. This course generally takes more time than the pre-filing course and includes information on creating and implementing a budget, managing one’s money post-discharge, and using credit wisely and effectively.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy lawyer explains the adversary proceeding in bankruptcy...

An adversary proceeding is comparative in bankruptcy to a lawsuit in civil state court. When a bankruptcy petition is filed and the creditors are noticed, the creditors are given a window of opportunity to file a claim with the court stating a reason or reasons why their debt should not be discharged. Adversary proceedings are governed by Federal Rules of Bankruptcy Rule 7001and can be initiated to determine dischargability of a debt, validity or extent of a lien, to object to a discharge, to obtain an injunction, or to determine a co-debtors liability.

An adversary proceeding is not its own separate lawsuit, but in fact a lawsuit within the bankruptcy itself. The person seeking relief is called the plaintiff and files a complaint at the bankruptcy court. The debtor becomes the defendant for the term of the adversary proceeding. The defendant will file an answer, should he or she dispute the debt, and then a round of discovery will take place and it will all culminate in a court trial should the parties not settle amicably.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney elaborates on California Foreclosure and Bankruptcy Law

One of life’s greatest fears is being homeless. California foreclosure is at an all time high at the present moment. In California, a person purchasing a home will normally borrow money from a bank or financial institution to do so. When this occurs, the lender will secure its loan by placing a lien on the house. While the loan is outstanding the lien remains on the house and the house cannot be sold without first satisfying that lien. When a borrower neglects to make their monthly payments on the loan, the lender can foreclose. In California foreclosure can be done in one of two ways. The most common California foreclosure is a judicial foreclosure. The lender files a lawsuit in civil court and asks that the judge issue an order evicting the tenants and transferring title back to the lender.

A California foreclosure proceeding can be slowed by a borrower by filing for either a Chapter 7, Chapter 11, or Chapter 13 bankruptcy. Once the debtor files for bankruptcy in California foreclosure is stopped and the debtor has a few more months to attempt to work something out with the lender. A lender can attempt to proceed with its California foreclosure by filing a Motion for Relief from Stay. If granted in California foreclosure may resume from the point at which it left off prior to the filing for bankruptcy. Therefore, filing for bankruptcy is one way an individual can stop a California foreclosure.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankrutpcy attorney explains the Means Test in bankruptcy...

In 2005, the United States Bankruptcy Code was re-written. One of the major changes was the inclusion of the bankruptcy means test. The bankruptcy means test is a formula used to determine whether or not the debtor has enough disposable income at the end of the month to repay his or her creditors. The bankruptcy means test is primarily used as a tool to deter fraudulent filings and help the Trustee recognize abusive filings.

The bankruptcy means test is a formula devised which exempted “survival” expenses, such as food and mortgage, and looked at the excess income. Should said monthly income exceed twenty-five percent (25%) of their unsecured nonpriority debt (mainly credit and department store cards, medical bills, and personal loans), the debtor may not file for Chapter 7 bankruptcy. The second part of the test measures the debtor’s income to the state’s median income and if the debtor’s families combined gross income is greater than the median income for that state, the debtor may need to file for Chapter 13 bankruptcy.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy lawyer discusses Debt Collection and Creditor Harassment

Most Americans are in at least some debt. Many of those people are behind in repaying that debt. Being behind in your bills can often lead to debt collection and creditor harassment. Back in 1977, the Federal Trade Commission (FTC) realized that debt collection and creditor harassment had become immoral and enacted the Fair Debt Collection Practices Act (FDCPA). A creditor may not “harass, oppress, or abuse any person” in a debt collection attempt. One of the major violations of debt collection and creditor harassment is when a debt collector continues to contact a debtor when it is known and documented that the debtor is represented by an attorney or contact that debtor at their place of employment.

Another major tactic used in debt collection and creditor harassment is the use of threats of wage garnishments and levying of assets. The FDCPA states that a debt collector may not use such tactics unless it may lawfully garnish wages or levy assets. A creditor seeking debt collection may not use vulgar or offensive language. Often times, one of the most efficient ways of stop debt collection and creditor harassment is to fax and mail a cease and desist letter to the debt collection agency.

A bankruptcy petition appears to be fairly simple when first viewing it, but a bankruptcy petition is actually a very intricate document where the smallest detail or omission can mean a world of trouble, including losing a house or car or retirement account. Probably the most scrutinized section of a bankruptcy petition is the monthly income and expenses schedules. This is what the Trustee views most important as this is where debtors tend to fudge the most.
If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney explains what a bankruptcy petition is...

A bankruptcy petition is the document that is initially filed with the court which sets forth all of the debtor’s personal and financial information. A bankruptcy petition includes the following: a voluntary petition, a list of real property, a list of personal property (bank accounts, household goods, jewelry, clothing, etc.), a list of exempted items, a list of your secured and unsecured creditors, a statement of your monthly income and expenses, , the means test, and what is known as the Statement of Financial Affairs. The Statement of Financial Affairs included in the bankruptcy petition includes such items as your gross income for the last three years, any foreclosures or repossessions, any civil lawsuits against the debtor, and many other items related to the debtor’s finances.

A bankruptcy petition appears to be fairly simple when first viewing it, but a bankruptcy petition is actually a very intricate document where the smallest detail or omission can mean a world of trouble, including losing a house or car or retirement account. Probably the most scrutinized section of a bankruptcy petition is the monthly income and expenses schedules. This is what the Trustee views most important as this is where debtors tend to fudge the most.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose Bankruptcy attorney comments on Mortgage Modification and Bankruptcy

One of the hottest new trends in the mortgage market is what is called a mortgage modification. A mortgage modification is when the lender, or mortgagor, sits down with the borrower, or mortgagee, and renegotiates the terms and possibly the amount of the current mortgage. A mortgagor is inclined to at least attempt a mortgage modification for the simple reason that as currently stands, the mortgagee cannot pay its mortgage and the lender is virtually without profit on the loan. The lender then has to go through the lengthy and somewhat expensive process of judicial foreclosure.

Mortgage modifications are rare however. Often times, borrowers attempt to go after a mortgage modification alone. A lender can take advantage of this as it is likely the individual attempting the mortgage modification is inexperienced and not as knowledgeable in the real estate field.

Another common trend arising is to see borrowers attempt a mortgage modification while preparing for a chapter 7 bankruptcy. This added pressure by the borrower of threatening to file bankruptcy and discharge his or her debts causes the lender to think twice about the mortgage modification. This is furthered by the 90-day automatic stay of bankruptcy. It is best to consult an attorney or legal professional before attempting a mortgage modification.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney answers the Question: Who can exit bankruptcy, Chapter 7?

Answer: Anyone including corporations can exit chapter 7 bankruptcy.

The chapter 7 process is straight forward and allows a debtor to exit bankruptcy in a relatively expedited process. Generally, to exit bankruptcy in a chapter 7 the process involves three steps. First, a debtor takes a pre-filing counseling course. Next a debtor files their bankruptcy petition. Next, a debtor takes their post filing counseling course. Last, a debtor attends the 341 hearing. After the 341 hearing a debtor can generally sit back and wait for their discharge. To exit bankruptcy in a chapter 7 it’s that simple.

Question: Who can exit bankruptcy, Chapter 13?

Answer: Only individual debtors can exit Chapter 13 bankruptcy. The chapter 13 process is more complicated than Chapter 7. Chapter 13 consists of a “plan” that restructures a debtor’s debt. The “plan” must be confirmed by a judge. Generally, Chapter 13 plans last 3 or 5 years. During that time a debtor makes regularly scheduled payments to the appointed trustee for the duration of the plan. Once the plan is finalized a debtor then receives their discharge. While it is arguably a more tedious task to exit bankruptcy in a Chapter 13, there are often benefits to filing a Chapter 13 as opposed to a Chapter 7. An experienced attorney can help a debtor make this choice.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose Bankruptcy Attorney mentions famous Chapter 11 bankruptcies...

A Chapter 11 bankruptcy is a method in which a business may reorganize its infrastructure in order to pull itself from debt and begin making a profit again. A Trustee works with the organization to create a feasible business plan which allows the company to operate with a profit. Some of the most famous chapter 11 bankruptcies include:

Pacific Gas & Electric (PG&E) filed its most famous chapter 11 bankruptcy back in 2001 following California’s 1996 deregulation of public utilities. At the time of filing, PG&E had accumulated $12 billion in debt and $36 billion in assets.

Probably the most famous chapter 11 bankruptcy of all was Enron’s bankruptcy filing in December 2001. Enron filed chapter 11 bankruptcy with over $63 billion in assets. The downfall of Enron was due to the scandals by certain officers of the company. Stock plummeted from $90 per share to $0.10 per share, costing stock holders over $11 billion.

US Airways was another famous chapter 11 bankruptcy. US Airways filed for chapter 11 bankruptcy back in August 2002 and September 2004. With the terrorist attacks of September 11, the airline industry was struck with financial turmoil. One of the major US Airways’ hub, Reagan National Airport, remained closed the longest of all the major airports.

IndyMac Bancorp, Inc. filed for its famous chapter 11 bankruptcy in July of 2008. IndyMac was at one time the largest mortgage lender in California. With increasing default rates in California, IndyMac was brought down and eventually collapsed. At the time IndyMac filed its famous chapter 11 bankruptcy, its assets totaled $32.7 billion, while its liabilities were approximately $400 million.

Who can forget the famous chapter 11 bankruptcy filing of Lehman Brothers back in September of 2008? This famous chapter 11 bankruptcy is considered the most complex and largest bankruptcy case in history. The company’s assets were estimated to be just around $600 billion. The collapse not only destroyed Lehman Brothers, but took a devastating toll on Wall Street.

Lastly, a list of famous chapter 11 bankruptcies would not be complete with General Motors. GM filed for chapter 11 bankruptcy back in June of 2009 following a government bailout of approximately $19 billion and the government’s pledge to supply $30 billion more during its reorganization.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy lawyer explains the bankruptcy exit plan...

Most debtors contemplating bankruptcy often hesitate to file because they fear the long term impact bankruptcy will have on their credit and their ability to function in today’s society without good credit. A simple solution to this dilemma is having a good bankruptcy exit plan.

To begin, despite what banks or neighbors may have told you, bankruptcy is not a one way ticket to financial purgatory. Most debtors when they file already have poor credit and a high debt to income ratio. Once debt is discharged in bankruptcy a debtor’s debt to income ratio will immediately improve. Thus any bankruptcy exit plan should begin with a debtor running their credit to ensure that the debt has actually been removed from their credit report.

A good bankruptcy exit plan also acknowledges reality. Thus, debtors should understand they probably won’t receive credit card solicitations for 18 to 24 months. Thus, a good bankruptcy exit plan will account for this period of time. Despite what some may say, it’s absolutely possible to survive today without credit cards. Debtors simply need to account for all of their expenses and calculate a daily, weekly, and monthly budget based on their income. If a debtor is overextended they should downsize. If a credit card needs to be used for purposes such as renting a car or hotel room, debtors should use a debit card.

Last, any good bankruptcy exit plan should include a savings plan. Rather than depending on credit cards to get through tough financial times, post bankruptcy a debtor should start saving about six to nine months worth of living expenses. These funds can then be used during emergencies rather than credit cards.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney lists 5 Things Not To Do With Your US Bankruptcy Trustee:

For every bankruptcy petition filed, Chapter 7, Chapter 11, or Chapter 13, an individual known as a US BankruptcyTrustee is assigned to oversee the life span of the case. A US Bankruptcy Trustee is not necessarily employed by the Court, they may be a mediator or attorney. With that being said, the US Bankruptcy Trustee must follow a very strict code of ethics. The following is a list of 5 things not to do with your us bankruptcy trustee:

Do not attempt to hide or cloak your assets, they will ultimately uncover the truth. Be honest, be candid. Hiding assets is known as bankruptcy fraud and is punishable but a fine and/or imprisonment.

Do not deter from the us bankrutpcy trustee's requests. A U.S. Bankruptcy Trustee is not asking for your tax returns and pay advices because they need pleasure reading, they are requesting these documents in order to verify the information you set forth in your petition.

Do not put off execution of the us bankruptcy trustee's requests. Be timely. There is not much more that will frustrate a U.S. Bankruptcy more than a debtor who is untimely with no legitimate excuse. Being untimely may result in the U.S. Bankruptcy Trustee filing a motion to dismiss the debtor’s case for lack of compliance.

Do not think that the us bankruptcy is your friend. Sound harsh? Perhaps, but your complete understanding that the us bankruptcy trustee's job is to uncover bankruptcy fraud and detect instances where a debtor may be hiding certain assets is key.

Lastly, do not disrespect your US Bankruptcy Trustee. Never question or doubt what they are telling you or requesting from you. Every move that the US Bankruptcy Trustee makes is a calculated one to attempt to trick or confuse a debtor into making a claim that goes against something the debtor stated in their bankruptcy petition.

Following this 'What Not To Do' should make the bankruptcy process smooth and easy for the creditors, the debtor, and the US Bankruptcy Trustee.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney reviews a Chapter 11 plan of reorganization...

What are the specific components of a Chapter 11 plan of reorganization?

All bankruptcy law follows the same federal guidelines which are set forth in Title 11 of the United States Bankruptcy Code. A Chapter 11 bankruptcy is no different. The first and foremost requirement in a Chapter 11 plan of reorganization is what is known as ‘classification.’ All debts, secured and unsecured, must be given a label and all similar debts are clumped together to make the payments on secured and unsecured debts easier for the Trustee and the company.

A plan of reorganization must also identify those classes which are impaired. An impaired class is one which is adversely affected by the filing of the bankruptcy. An example of a class that is not impaired would be one where the terms of a contract between the creditor and debtor remain completely unaltered in the plan of reorganization. A class that is not impaired is presumed to have accepted the plan of reorganization.

Lastly, the plan of reorganization must provide a method in which the plan will be implemented, including prohibiting non-voting stock from being issued and a provision for office and director selection consistent with the interests of the creditors.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney answers: What are the specific components of a Chapter 11 plan of reorganization?

All bankruptcy law follows the same federal guidelines which are set forth in Title 11 of the United States Bankruptcy Code. A Chapter 11 bankruptcy is no different. The first and foremost requirement in a Chapter 11 plan of reorganization is what is known as ‘classification.’ All debts, secured and unsecured, must be given a label and all similar debts are clumped together to make the payments on secured and unsecured debts easier for the Trustee and the company.

A plan of reorganization must also identify those classes which are impaired. An impaired class is one which is adversely affected by the filing of the bankruptcy. An example of a class that is not impaired would be one where the terms of a contract between the creditor and debtor remain completely unaltered in the plan of reorganization. A class that is not impaired is presumed to have accepted the plan of reorganization.

Lastly, the plan of reorganization must provide a method in which the plan will be implemented, including prohibiting non-voting stock from being issued and a provision for office and director selection consistent with the interests of the creditors.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose Bankruptcy attorney mentions same sex bankruptcy filing

California’s Supreme Court decision to allow same-sex marriages brought some relief to the ‘partner’ aspect of same-sex marriage, but brought nothing to the table when it comes to filing bankruptcy. Because bankruptcy is controlled by federal law (11 U.S.C.), a heterosexual couple may file jointly but a homosexual couple may not. This is because federal law does not legally recognize homosexual marriages. What makes this worse is that in states that have approved same-sex marriage, each spouse is liable for one another’s debts. This is a complete oxymoron; the state government says homosexuals can be married and share complete liability for debts, but the federal government says a homosexual couple cannot file jointly for bankruptcy.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney discuss student loans and bankruptcy

Prior to the dramatic change in bankruptcy law in 2005 with the adoption of the Bankruptcy Abuse Prevention and Consumer Act (BAPCPA), private student loans could be discharged in bankruptcy. However, post-BAPCPA law very rarely allows for any kind of student loan, government-backed or private, to be discharged in bankruptcy. Thankfully, a few legislators have stepped up and taken initiative against this change by proposing that once again private student loans can be discharged through bankruptcy.

Private student loans can carry an interest rate of fifteen percent (15%) and higher. Student loans, unlike most other loans, do not become ripe until the student either graduates or leaves school. Interest is charged on the principal balance however throughout the entire time the student is attending school. With the rising costs of the University system in California and the decreasing availability of well-paying jobs, more and more people are deterred from continuing education either after high school or post-graduate education. A law student will likely graduate with $100,000 or higher in student loans with no guarantee of a decent paying job following graduation.

Under the current law, BAPCPA allows for Chapter 7 debtor to receive a full discharge on their unsecured debt; however certain debts such as spousal support, child support, student loans, and most tax debt are not dischargeable. Proponents for the new legislation on student loans argue that student loans are like other dischargeable debt in that they do not directly contribute to one’s wellbeing. Advocates for the new legislation argue that allowing private funded student loans to be discharged will decrease a lender’s security and force them to charge higher interest rates and fees to cover the potential for lost income.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy lawyer explains the means test...

The 2005 changes and amendments to Section 11 of the United States Code (U.S.C.), the Section that deals with bankruptcy, were designed to prevent alleged abuse of bankruptcy and to require that debtors pay for those debts which they knowingly incurred. The legislation made it much more difficult for the average American to file for, and eliminate, their debt. It appears that the legislators want to a make Chapter 7 bankruptcy discharge tougher to obtain and push debtors into a Chapter 13 repayment plan.

One of the major changes/additions in the 2005 legislation was creating the “means test.” This test is a two part test which takes into account the disposable income a debtor brings in after his/her living expenses are taken into account. Obviously, those who are deemed to have too much monthly excess income will not be allowed a Chapter 7 discharge and will be forced to either file under Chapter 13, or not file at all. Under the old laws, judges and trustees had more discretion in their decisions and could judge each case by its own unique circumstances.

A formula was devised which exempted “survival” expenses, such as food and mortgage, and looked at the excess income. Should said monthly income exceed twenty-five percent (25%) of their unsecured nonpriority debt (mainly credit and department store cards, medical bills, and personal loans), the debtor may not file for Chapter 7 bankruptcy. The second part of the test measures the debtor’s income to the state’s median income and if the debtor’s families combined gross income is greater than the median income for that state, the debtor may need to file for Chapter 13 bankruptcy.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney discusses foreclosure

California is seeing a new trend in lawsuits; Homeowners Associations are suing former homeowners over unpaid association fees on homes that have been foreclosed upon and individuals who have filed for bankruptcy. On top of the association fees already owed, these individuals are being sued for attorney and court fees associated with the lawsuit. One of the ways foreclosed and bankrupt homeowners are getting hit with these fees is that when the bank forecloses on the house, the debtor(s) name(s) are left on the Deed and thus they are liable for the yearly fees.

A bankruptcy filing discharges any homeowner's fees that accrued before the bankruptcy case is filed. The discharge does not release the homeowner for fees for months after the case is filed, for so long as the debtor owns or occupies the residence.

The newly enacted 11 USC 523(a)16 discharges “any debt for a fee or assessment that becomes due and payable after the order for relief to a membership association with respect to the debtor’s interest in a unit that has condominium ownership, in a share of a cooperative corporation, or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot, but nothing in this paragraph shall except from discharge the debt of a debtor for a membership association fee or assessment for a period arising before entry of the order for relief in a pending or subsequent bankruptcy case . . . .”

The new language being “as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest” is what triggers the liability.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!